While many praise Representative Camp (R-MI) for proposing a pro-growth yet DOA overhaul of the nation’s tax system, the fact that he is termed out as Chairman of the tax writing Ways and Means (W&M) Committee in 1/15 and that his partner, former Senator Max Baucus, is now the powerless Ambassador to China, suggests Camp did it to show he at least did something about taxes while heading W&M.
Tag Archives: Tax Reform
Tax Unreform
Between Benghazi, the heavy-handed AP data grab and the IRS fiasco, any tiny window for tax reform has all but shut. While Senator Baucus and Representative Camp, who head up both tax writing committees have 17 months until the next election, the combination of an uninvolved administration, 2014 being an election year, fierce lobbying against change by corporations, and a requirement for budget neutrality make any chance for reform history.
Tackling Taxes
With tax reform in the air here are three principles economists want reform based on. 1) Broaden the base and lower rates. Lower marginal rates distort behavior less. 2) Tax consumption not income. Taxing income discourages savings, investment and work. 3) Tax what you don’t want because taxes reduce the supply of whatever is taxed. If you don’t want cigarettes tax them more, same with gasoline and sugar cereals.